Trump Team propose $600 Billion Tax Cut

[Jimmy Higgins]

link

In a Wednesday morning speech, Treasury Secretary Steve Mnuchin said the overhaul would amount to "the biggest tax cut" and the "largest tax reform" in U.S. history. The claim suggests the cuts would cut more than $600 billion a year in revenue — or roughly 4 percent of the economy, exceeding the size of President Ronald Reagan's 1981 tax package.

I'm not certain why they say 4% of the economy and not around 15+% of the Federal tax revenue.

Over the first 3 years of such a plan, the combined deficits would have to be over $1 trillion. And $600 billion?! That is greater all non-military discretionary spending. There is no way Congress can cut enough of the budget to cover this. Then on the other side, if this were to drive economic growth large enough to recover the lost revenue, I'd think that'd levy some serious inflation on the economy, because the growth would be too much for the US economy to absorb.

 

[funinspace]

Just for clarity, your numbers would be the increased level of deficits, not the total deficits. Without increased spending on Walls or the military complex, FY2017 is already slated to have roughly a $550 billion deficit. What's $3,000,000,000,000 between friends in 3 years

We'd be back to trillion dollar deficits as far as can be seen...

 

[SimpleDon]

link

In a Wednesday morning speech, Treasury Secretary Steve Mnuchin said the overhaul would amount to "the biggest tax cut" and the "largest tax reform" in U.S. history. The claim suggests the cuts would cut more than $600 billion a year in revenue — or roughly 4 percent of the economy, exceeding the size of President Ronald Reagan's 1981 tax package.

I'm not certain why they say 4% of the economy and not around 15+% of the Federal tax revenue.

Over the first 3 years of such a plan, the combined deficits would have to be over $1 trillion. And $600 billion?! That is greater all non-military discretionary spending. There is no way Congress can cut enough of the budget to cover this. Then on the other side, if this were to drive economic growth large enough to recover the lost revenue, I'd think that'd levy some serious inflation on the economy, because the growth would be too much for the US economy to absorb.

For a brief period in the presidential primaries, candidate Trump was proposing to get rid of the carried interest exclusion that allowed some of the highest paid people in the US to pay only income tax at the 15% capital gains rate. He is now proposing to allow anyone who can arrange their income as a S class or a LLC corporation to be taxed at the 15% rate. This also includes some of the highest paid people in the country, doctors, lawyers, architects, engineers, etc.

 

[Nice Squirrel]

Trump Team propose $600 Billion Tax Cut

Finally something for me.... oh wait, my taxes and fees go up!

But...

The plan will also include child-care benefits, a cause promoted by Trump's daughter Ivanka.

That means an extra $10/yr tax credit for a single mother making $30K!

This means sooooooo much.

Fuck you GOP.

 

[Ford]

Trump Team propose $600 Billion Tax Cut

Finally something for me.... oh wait, my taxes and fees go up!

Don't worry, it will all trickle down just like every other time there was a massive tax cut on the wealthy!

 

[Jimmy Higgins]

Just for clarity, your numbers would be the increased level of deficits, not the total deficits.

Correct. That is what I meant to get across.

Trump Team propose $600 Billion Tax Cut

Finally something for me.... oh wait, my taxes and fees go up!

But...

The plan will also include child-care benefits, a cause promoted by Trump's daughter Ivanka.

That means an extra $10/yr tax credit for a single mother making $30K!

This means sooooooo much.

Fuck you GOP.

Single mother making $30k? Try family making $60k. I never knew how poor I was until I saw the price of day care!

 

[SimpleDon]

Republicans and conservatives can't answer the fairly obvious question about their assertion that lowering taxes on the wealthy increase investment in the US. That question is of course, if lowering taxes on the wealthy resulted in an increase in investment and an increase in growth, then why can't we see it after lowering the taxes on the wealthy many times over the last thirty five years? In fact, both investment and growth have been lower in the last thirty five years than they were in the previous thirty five years when the wealthy paid much higher income taxes. And the only sustained periods of higher than average economic growth in the last thirty five years have followed tax increases on the wealthy.

There is no reason to worry about higher inflation in the real economy if we lower taxes on the wealthy. This is because lowering taxes on the wealthy doesn't produce an increase in investment or an increase in demand for products. Rather it creates inflation in the stock market and for other so-called investments like hedge funds, derivatives, etc., the Wall Street fantasy economy. The only areas of the real economy where the tax cuts for the wealthy creates inflation is high end real estate and some minor areas like collectibles, i.e. paintings, antique automobiles, coins, stamps, etc.

This is because cutting taxes on the wealthy specifically doesn't produce an increase in investments and, outside of the areas above, doesn't increase the demand for products. In fact, since previous tax cuts for the wealthy have been accompanied by tax increases for everyone else and the suppression of wage increases for everyone else, they have resulted in a lowering of demand in the economy, with a resulting decrease in investment, no one is going to expand a business if the demand for the increased products and services provided by the investment isn't there.

 

[Elixir]

... cutting taxes on the wealthy specifically doesn't ... increase the demand for products.

Except stuff like this: (Cost: $1.35m)

 

[Jimmy Higgins]

Why isn't the fixture gold?

 

[southernhybrid]

It's the Laffer Curve all over again, or what Bush the elder referred to as VooDoo economics. Give huge tax breaks to the rich and it will stimulate the economy and we'll all be much better off, except we won't. I call it the I got mine, fuck you Republican tax plan. I wonder how much of this mess will actually pass. I imagine that Paul Ryan is walking around with a great big hard on right now.

 

[Jimmy Higgins]

It's the Laffer Curve all over again, or what Bush the elder referred to as VooDoo economics. Give huge tax breaks to the rich and it will stimulate the economy and we'll all be much better off, except we won't. I call it the I got mine, fuck you Republican tax plan. I wonder how much of this mess will actually pass. I imagine that Paul Ryan is walking around with a great big hard on right now.

Yeah, give a tax cut to the proles, and we spend it across many different areas. That greases the wheels in the national economic engine.

Give a really rich guy a tax cut and they may spend it, and if they do, it'd be in niche areas that don't benefit the economy as a whole.

 

[Elixir]

Why isn't the fixture gold?

Ha! Another problem that can be fixed with big tax cuts for the mega-rich.

 

[Cheerful Charlie]

Well, obviously, the GOP still believes in magic. The Bush tax cuts helped double the national debt, Big tax cuts didn't work in Louisiana or Kansas, but here we go again. Stupidity rules, common sense is utterly abandoned.

 

[funinspace]

Why isn't the fixture gold?

Ha! Another problem that can be fixed with big tax cuts for the mega-rich.

But it also needs diamond bits to properly cut those golden sheets, so they will need a bigger tax cut...

 

[Tom Sawyer]

Hey, if you don't like the US government giving more money to billionaires, why don't you just get your lazy asses off the couch and start a giant international conglomerate so that you become even richer billionaires and then bribe the congress critters more money to do something else instead?

If you're not even going to bother doing something as simple and straightforward as that, you have no cause to complain.

 

[SimpleDon]

Well, obviously, the GOP still believes in magic. The Bush tax cuts helped double the national debt, Big tax cuts didn't work in Louisiana or Kansas, but here we go again. Stupidity rules, common sense is utterly abandoned.

This is the modern Republican party.

It wasn't just Bush's tax cuts that increased the national debt. He fought two wars "off the books" not adding the cost to the official budget deficit, but to the national debt. Also they passed the Medicare drug benefit without any way to pay for it, so it too adds to the national deficit and debt. Their steadfast belief in deregulation and government bad, the free market good, meant that they failed to regulate the banks securitization of risky mortgages, by which the banks were intentionally saddling people with mortgages that they won't be able to pay for after the low teaser rates expired, safe for the banks they thought because everyone knew that home values never go down, a disastrous miscalculation that nearly destroyed the world's economy, which created the worse budget deficit in the history of the world, 1.4 trillion dollars, in the last Bush administration budget.

They only seek to impose austerity on the Democratic administrations, not on themselves. They will order the CBO to use "dynamic scoring" to prove that these tax cuts are revenue neutral, basically they will order the CBO to join the Republicans in their fantasy world where lies are true and the truth is a lie. Then they will tell their nitwit supporters that spending is too high so that we have to cut Social Security, Medicare and Medicaid and to cut Wall Street in for ten percent of the reduced benefits.

 

[Elixir]

Hey, if you don't like the US government giving more money to billionaires, why don't you just get your lazy asses off the couch and start a giant international conglomerate so that you become even richer billionaires and then bribe the congress critters more money to do something else instead?

If you're not even going to bother doing something as simple and straightforward as that, you have no cause to complain.

Can you say "hostile takeover"?
It's easy enough for you to sit up there in pristine Canuckistan and preach to us. But you don't have the kind of predators that we do roaming the financial fields.

 

[barbos]

Why isn't the fixture gold?

Cause it's platinum, duh!

 

[jonatha]

He is now proposing to allow anyone who can arrange their income as a S class or a LLC corporation to be taxed at the 15% rate.

I read that as well, but it's not mentioned in his 12-bullet-point "plan"....

 

[Don2 (Don1 Revised)]

It's the Laffer Curve all over again, or what Bush the elder referred to as VooDoo economics. Give huge tax breaks to the rich and it will stimulate the economy and we'll all be much better off, except we won't. I call it the I got mine, fuck you Republican tax plan. I wonder how much of this mess will actually pass. I imagine that Paul Ryan is walking around with a great big hard on right now.

with his hat on backward doing bicep curls.